Squid DEX Usage
This analysis focuses on the usage of Squid DEX. Squid provides a convenient asset-to-asset cross-chain swapping feature initiated with a single click. Despite its simplicity for users, the underlying technology of Squid relies on DEX swaps to execute the asset transfers.
The main objective is to identify the DEXs that Squid most frequently uses for source and destination transactions.
So, I went through Squid and analyzed DEXs based on these parameters:
- Users
- Transactions
- Volume
Following Axelar launch on the mainnet last year, several platforms with distinct features have utilized GMP. One such platform is Squid Protocol, which leverages Axelar's General Message Passing functionality to route liquidity cross-chain and enable cross-chain swaps. This is accomplished through smart-contract calls across numerous chains. Using Squid and Axelar, users can smoothly exchange tokens from one blockchain to another on a unified platform.
To sum up, the development of cross-chain liquidity is crucial to establish the foundation for interoperable applications and promoting a more robust ecosystem.
From the tables of Axelar Squid, I retrieved transaction hashes alongside additional parameters such as volume, sender, source, and destination chains. Subsequently, I linked these hashes to the Fact token transfers on Ethereum, Polygon, Avalanche, Arbitrum, and BSC. As a result, I obtained fundamental parameters.
To determine the DEXs involved, I merged my discoveries with cross-chain labels using the origin address. This yielded DEX names in addition to further data.
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